How much Equity is in your Property?
Essentially, you can calculate this by seeing what the mortgage owed on your property is against the value of the home.
For example, if your home is worth £250,000 and you have a remaining mortgage of £200,000, then your equity/money you have paid off already on the property is £50,000.
You will still need to prove your income and ability to repay the second mortgage monthly repayments, but the amount a lender will give you will be based on and secured against the equity in your home.
In the example above, this would be £50,000.
Your equity can also increase with the property’s value.
- A second charge mortgage allows you to get a loan secured against the equity in your property. So in the above example, you could get a loan of up to £50,000, depending on your credit rating and ability to repay both mortgages at the same time.
- Second charge mortgages usually let you borrow money starting at £1,000. The higher the equity in your property, the more money you will be likely to be able to borrow.
